As of Sept. 10, the following stocks seem to be underestimated by the market, as their price-earnings ratios without non-recurring items (NRI) trade below 20 while their price-earnings to growth (PEG) ratios trade near or below 1.
Furthermore, Wall Street sell-side analysts have recommended positive ratings for them, suggesting that these stocks are foreseen to trade higher over the months ahead.
Celanese Corp
The first company that makes the cut is Celanese Corp. (CE, Financial), an Irving, Texas-based manufacturer of high-performance engineered polymers.
As of Sept. 10, the price-earnings ratio without NRI is 7, which is more compelling than the industry median of 21.12, while the PEG ratio of 0.31 is more compelling than the industry median of 1.88.
On Sept. 10, the closing price was $153.21 per share. The share price has increased by 40% over the past year for a market capitalization of $17.02 billion and a 52-week range of $103.30 to $171.
Wall Street sell-side analysts recommend a median rating of overweight and an average target price of $181.18 per share for the stock.
Select Medical Holdings Corp
The second company that qualifies is Select Medical Holdings Corp (SEM, Financial), a Mechanicsburg, Pennsylvania-based operator of critical illness recovery, rehabilitation and occupational medical care facilities.
As of Sept. 10, the price-earnings ratio without NRI is 10.84, which is more appealing than the industry median of 30.14, while the PEG ratio is 0.84, which has more appeal than the industry median of 2.63.
The closing price on Sept. 10 was $34.53 per share, having increased 72.31% over the past year. The market capitalization is $4.65 billion and the 52-week range is $18.24 to $43.60.
Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $47 per share.
Taylor Morrison Home Corp
The third company that holds the criteria is Taylor Morrison Home Corp (TMHC, Financial), a Scottsdale, Arizona-based builder of single-family and multi-family homes in the U.S.
As of Sept. 10, the price-earnings ratio without NRI is 8.06, which is more compelling than the industry median of 12.19, while the PEG ratio of 0.77 is also more compelling than the industry median of 0.79.
The closing price on Sept. 10 was $26.52 per share, reflecting a 7.15% increase over the past year for a market capitalization of $3.32 billion and a 52-week range of $21.34 to $33.06.
Wall Street sell-side analysts recommend a median rating of overweight for the stock and have established an average target price of $38.25 per share.
Century Communities Inc
The fourth stock that matches the criteria is Century Communities Inc (CCS, Financial), a Greenwood Village, Colorado-based residential construction company selling homes under the Century Communities and Century Complete brands through its sales representatives and independent real estate brokers across 17 states in the United States.
As of Sept. 10, the price-earnings ratio without NRI is 6.37, which is more appealing than the industry median of 12.47, while the PEG ratio is 0.32, which has more appeal than the industry median of 0.79.
The closing price on Sept. 10 was $67.97 per share following a 72.43% increase happening over the past year. The market capitalization is $2.29 billion and the 52-week range is $36.84 to $83.20.
Wall Street sell-side analysts recommend a median rating of buy for the stock and have established an average target price of $101 per share.
Disclosure: I have no positions in any securities mentioned.
